Foreign drug manufacturers expect sales to rise 10 percent next year, on the back of improved government health-care spending.

Manufacturers under the International Pharmaceutical Manufacturer Group, or IPMG, estimate a turnover of $1.37 billion in 2016, compared to $1.25 billion estimated for this year.

"We are optimistic that the pharmaceutical market will continue to grow in the future, especially after the government promised to increase the health budget," said ParulianSimanjuntak, the IPMG director.

Indonesia's consumption of medicine is the lowest all of Southeast Asia, reflecting a lack of health-care services in the country, Parulian said.

Foreign drug makers currently hold about 25 percent of Indonesia's pharmaceutical market, which is estimated at $5 billion this year, according to the IPMG.

The lobby group includes the local units of global drug giants Bayer, Merck, Meiji, Novartis and Pfizer among its 24 members.